Steve Eisman, known as the 'Big Short' investor, said during a June 8 CNBC interview that he would not dismiss a potential merger between SpaceX and Tesla, though he described the scenario as deeply unattractive for SpaceX shareholders. Eisman's comments came as SpaceX attracted extraordinary IPO demand, with Reuters reporting more than $250 billion in investor interest against a planned $75 billion offering. The speculation reflects broader scrutiny over any potential consolidation within Elon Musk's business empire, as investors weigh the standalone value of SpaceX against Tesla's recent profitability challenges.
Eisman Comments on SpaceX-Tesla Merger Possibility During June 8 Interview
During the June 8 CNBC interview, Eisman was asked whether Musk could use SpaceX's stock value to acquire Tesla and bring the two companies under a broader X umbrella. Eisman treated the scenario as plausible, while making clear that he would not favor it as a SpaceX investor.
Eisman said:
"I wouldn't doubt it. I think if if I was a shareholder of SpaceX, that'd be the last thing in the world I'd want him to do. But I'm sure he's going to do it."
SpaceX has attracted extraordinary investor interest ahead of its IPO, with Reuters reporting more than $250 billion in demand against a planned $75 billion offering. The figures underscore the value investors place on the company as a standalone business.
Eisman is often called "The Big Short investor" because he was among the investors who bet against the U.S. housing market before the 2008 financial crisis. Alongside figures such as Michael Burry, Eisman's role was chronicled in Michael Lewis's 2010 book The Big Short, which was later adapted into a 2015 film.
Eisman Cites Tesla Profitability Concerns and EV Competition
Concerns about Tesla's profitability shaped Eisman's view of a potential deal. He argued that the company's earnings have deteriorated sharply in recent years amid intensifying competition in the EV market. That concern helps explain why he framed any Tesla deal as unattractive for SpaceX shareholders.
Electric vehicle economics formed the core of Eisman's skepticism. He described the EV business as capital-intensive and highly competitive, suggesting Tesla faces pressure from heavy investment needs, pricing challenges, and slowing profit momentum.
Chinese competition added another concern. Eisman said China produces EVs more cheaply than Tesla, giving rivals a cost advantage. That issue could weigh on Tesla's margins as global automakers fight for share in a crowded market.
Eisman reiterated:
"I wouldn't doubt that he buys it, but like I said, that's not something I would want to do."
FAQ
What did Steve Eisman say about a potential SpaceX-Tesla merger on June 8?
Steve Eisman said during a June 8 CNBC interview that he would not dismiss a potential merger between SpaceX and Tesla, though he described it as deeply unattractive for SpaceX shareholders. He stated: "I wouldn't doubt it. I think if if I was a shareholder of SpaceX, that'd be the last thing in the world I'd want him to do. But I'm sure he's going to do it."
Why does Eisman view a SpaceX-Tesla deal as unattractive for SpaceX investors?
Eisman argued that Tesla's earnings have deteriorated sharply in recent years amid intensifying competition in the EV market. He described the EV business as capital-intensive and highly competitive, and said China produces EVs more cheaply than Tesla, giving rivals a cost advantage that could weigh on Tesla's margins.
